Stability Pool

The Stability Pool (SP) is the primary source of funds for liquidations on Orby Network. When liquidations occur, SP depositors absorb the debt and, in return, receive a share of the liquidated collateral, distributed based on their deposit size.

Key Features:

• No minimum lockup – deposit and withdraw anytime.

• Withdrawals may be paused if there are undercollateralized positions.

Rewards for SP Depositors:

1. Liquidation Proceeds – Paid in the underlying collateral (e.g., $CDCETH).

2. Protocol Rewards – Paid in $esORB.

Commonly asked questions

Why should I deposit $USC in the Stability Pool?

• You will earn real yield (liquidation revenue) paid out in $cdcETH

• You will earn token incentives paid out in $esORB

  • $esORB can be converted to $ORB or deposited in the Vault for even more rewards

I deposited [USC 100] into the Stability Pool. Why do I now only have [USC 80]?

Any $USC deposited in the Stability Pool will be used to pay a liquidated user's debt. Hence, you will expect to see your $USC in the pool decline. However, you will instead receive $cdcETH at a discounted rate in return.

For example, a user with a collateral ratio of 135% (USC 100 worth of borrowing) gets liquidated. $100 will be taken from the Stability Pool (SP) to pay off his debt, and $135 of his $cdcETH collateral will be sent to the Pool and distributed between liquidity providers and the liquidator.

This essentially means that SP providers (excluding the liquidator) paid $100 for $134.325 worth of $cdcETH.

Can I withdraw my $USC at any time?

Yes - unless there are undercollateralized positions that have yet to be liquidated. In such a scenario, withdrawals will be halted until all underwater positions are liquidated.